robot trainers terrorizing wall street and the american and global economy let's bring in stacy herbert stacy herbert tell us more max kaiser well it is summer and summer is often the time of sequels so this brings me to the first headline deflationary blackhole the sequel who will wall street send to congress to extort fifteen trillion dollars this time yes they're back but before i start the whole that story i want to set the scene yes that this is unhappy robber gunmen calls a restaurant to gripe so this is a restaurant in atlanta georgia and a man who robbed a wendy's at gunpoint last week apparently was so upset with his haul that he called twice to the restaurant to complain afterward he said quote next time there better be more than five hundred eighty six dollars most is a brilliant i see we're going with this is brilliant because if the man were hank paulson and he was in front of congress they would have given him seven hundred billion you see because he's not a partner to wall street firm he's an untouchable and america's society is an underling is a part of the sort of class yes but as we

stacy herbert explained how the credit crunch was just the first step in what max calls the global economic death spiral stay with us. oh there yes this is the report i'm max kaiser and i'm with stacy herbert and today we're going to talk once again of the global nightmare that is the global economy and the global death spiral stairs your job or actually max the death spiral is in greece it's everywhere. we were but in particular it's angry is it today it is tensions rising in greece as austerity measures backfire this is a despicable article and they're focusing on greece and they see that unemployment is up to seventy percent in some regions and in athens up to seventeen percent of all shops have closed so this is the result of the economic death spiral and i want you to look at this chart it credit crunch leads to an economic downturn which leads to a deepening credit crunch which leads to further economic contraction which leads to business failures unemployment individual bankruptcies and then finally economic chaos so us terry therefore it was not a good idea andres it's not a good idea probably anywhere in the world in this type of environment which has been victimized by banking fraud and predatory bankers who ran up the guts stole the money so in response they're going to impose austerity on the people actually just to pay for the banker bonuses not to help the people well all the measures being done around the world from austerity measures to quantitative easing are usually employed right about at the economic chaos juncture right when you're erupting into a giant revolution and in fact the der spiegel article does quote a man who i can't pronounce his name so i won't say it. i'm terrible but he's in unemployed dockworker and he says the only thing that interests me anymore is my daily wage a loaf of bread is my political party if you take away my family's bread i'll take you down the government needs to know that well it's indentured servitude and subsistence toiling in the in the fields. the neo feudal economy we hope from leaders that they can keep economies growing to the extent that you don't have this desperate hand in mouth existence the leadership has failed you have them i see i'm not. really pay attention to oh it's beyond that the man is saying that he's not concerned about unions he doesn't care about any of the political parties all he cares about he says bread and if he's not eating now today it's revolution and that's what i'm talking about that's what economic chaos is it's beyond indentured servitude it's a beyond hand to mouth existence it's the next step which is economic chaos i understand one man of the street is talking economics is their own movement so i mean there's a few protesters there's a few. there's a little bit of this a little bit of that but is there truly a movement afoot i mean is there an organization behind this or just yap yap yap there is no organization behind chaos that's the exact definition of chaos that's what i'm saying is when you introduce quantitative easing as has been done during the russian revolution during the french revolution during the civil war on america . obviously those are times of economic chaos so let's move beyond what's out happening outside the moat us oil speculators find for one hundred dollar a barrel vanity trade the commodity futures trading commission has fined con agra twelve million dollars for a driving the price of oil up to one hundred dollars in january two thousand and eight just for vanity purposes they wanted to be the first guys to buy a hundred dollar oil as they put it some people collect art prints we collect price prints that's right price prints of course i know what this is all about explain what price prints are to us max well you know when you're a stockbroker like i was for so many years when you do a trade you like to see what you just did flicker across the ticker tape that's the print you see if i bought ten thousand shares of something it would have actually appear on the tape you know x.y.z. corp ten thousand buy to. you know like that's me i did that on part of the economy you say so as it's a to vainglorious pursuit to have you know your name attached to it of course the bigger the trade the the better you know wall street as we know is basically just a weenie waving contest of guys trying to get big trades on the ticker tape but so this con agra fellow he is just doing this for. glorious pursuit and the sad thing is that when you put a price up there it changes the entire global market so millions of people around the world this case this was a price propaganda as it relates to oil it changes the lives of millions of people there should be regulations against it of course but the people who should be regulating are the people who are in the pocket of companies like con agra in the major market makers around the world well he was fined twelve million dollars. the cost of course of the global economy was billions and billions and contributed of course to the collapse of the entire financial system but let's move on to us speaking of vanity trading we have another headline the rise and plunge of movie futures trading max max max you're in the news again i'm in the news again then love me in hollywood and cantor fitzgerald what are you going on here so you're being once again blamed for destroying a movie futures trading or saving the world from movie futures trading i've saved the world from cantor fitzgerald and movie futures trading but you talk about you know we're talking about neo feudalism me to mention the arrogance of cantor fitzgerald and very very on which is the other movie futures trading platform where they were arrogantly assumed that the peasants would accept their market yeah absolutely when i started the company we had the same problem with the m.p.a. back fifteen sixteen years ago so we totally avoided the m.p.a. i try to communicate that to cancer who bought my. company they were tone deaf and they ran into the exact same obstacle and they'll end up doing exactly what i was trying to do fifteen years ago which is introduce virtual currencies virtual trading is the hollywood dollar is it basically a game quote unquote peace and they're just got they got to be the most overrated firm on wall street at this point they're completely mismanaged they've absolutely no idea what they're doing well we're let's stay in hollywood here is it the end for gate crashing a proposed new law in california would make it illegal to gatecrash a hollywood party you would face one year in prison this is what i'm talking about hollywood is it's a feudal system as i told the reporter from the wrap who did the story on me just last week hollywood is a feudal system run by feudal lurie you have the right word there feudal because i don't even think it's neo feudal it never left feudalism it's always been futile and right now we have a kind of neal feudalism because we didn't go through a period of democracy and freedom and republicanism and you know but now all that's going back so we have neo feudalism in the rest of the economy and we have feudalism still in hollywood and why this is important stays there is because when people talk about enron accounting off balance sheet accounting booking profits now and deferring losses for eternity that is based on hollywood accounting before there was enron accounting there was hollywood accounting hollywood invented the cook books accounting that ate wall street and ate the american economy so it's important to follow the trends are and the box office futures contracts that i invented that cantor tried to do and failed that would put another arrow in the quiver of those feudal lords out there that's why i don't support it in america maybe outside of america but out in america well speaking of a feudal lords in a feudal lords the media is a fox and funs news corps donates one million dollars to republican governors association so this is rupert murdoch and he. you know now that the supreme court has ruled that corporations in america which are ruled previously as human beings basically they have the rights of human rights now they have the exception of being able to donate unlimited amounts to to any political party so news corps has donated one million dollars and they say that it's because they believe in the power of free markets rupert murdoch if you ever notice the news car is one of the worst performing stocks on the new york stock exchange has been for years because this guy can't compete on an open playing field he goes into the new economy space on my space fails he takes one of his big publications in the u.k. behind a far wall paywall and fails what he's trying to compete head to head with the real competitors he's a failure oh yeah he can make a few coins being in the monopoly business maybe in the satellite business he can be a rent charging monopolist an oligarch big whoops a recess monkey can make money this way but as a businessman open pitch head to head with real competitors he's a failure well max you mentioned his online failures including my space of course was a fail because it's open platform it is a genuinely free market it's all net neutrality at every single site compete equally with the other so he is one of the people behind and introducing tollbooths whether it's a pay wall but some are hoping to get an entire paywall there so murdoch's new i paper one last tragic roll of the digital dice and journalists here says oh rupert you crazy old lunatic what's remarkable about this current escapade is that murdoch is actually proposing to sell a product that people have previously failed to even give away for free well the previous failure was actually rupert murdoch's own publication in the u.k. the london paper he tried to give us away for free it was supposed to be light hearted news like none of the gory details of anything that matters it was supposed to be for young people. well now he's doing it online it's only going to be available online and he's hoping that young people will pay well is using money on every unit sold and hoping to make it up on volume well it will might work if google variety get their way because if you introduce tollbooth into the economy into the online economy then of course these feudal lords can control whether or not who gets fast access who gets slow access which sites which content creators have slow access so first i'm going to go back to july and this headline barry diller worries about the internet tollbooth again told me so very crucial to a feudal economy and here's barry diller billionaire media you know tycoon and he says that what a tollbooth would equal basically giving fast access to certain companies like fox and slow access to other companies like say us so the u.s. taxpayer builds the internet visa v. darpa which was a government project the us taxpayer underwrites the banks to belle's them out the banks to finance companies like google and verizon so google and rise in return step the customer stab the consumer the taxpayer in the back you know i'd like to address the founders of google. like i'd like your mom to take you over her knee and give you a good spanking because you kids over there at googleplex in california deserve a good spanking from your mom because you are an embarrassment and you have a shame you brought shame shame well actually so that continuing on the headline of the tollbooths google and horizon outlined vision for open internet they're open internet is exactly what barry diller previously described as tollbooth so with this i'm thinking google might be the next headline might explain why google is all for now. introducing tollbooths and that's google chief my fear is for generation facebook so he's afraid that too many young people are giving all of their private data to facebook. willingly google has been collecting it via them and n.s.a. databases like creaming it all secretly there's a good idea for a. merkel and germany why not resurrect the old stasi an east german and take it public and call google stock you'll make a instant hundred billion dollars all right stacy arbor thanks so much for being on the kaiser report thank you max don't go away when we come back everything digital we're going to london so stay there. welcome back to the kaiser report time now to go to london and speak with richard buchanan he's got something quite interesting that could herald the beginning of a whole new era in the labor relations maybe facebook users union richard began to welcome the kaiser report. i max are you all right now richard buchanan you've started a facebook users union why and how many have joined so far tell us about this the reason i started the facebook users union is to highlight the fact that these companies are effectively digitally sharecropping the users they. as corporative themselves as private companies that hold on hold on he have a term their digital share croppers so if i understand you correctly the people on facebook are giving all of their work as essentially all the hours they spent creating stuff to social networking stuff filling